What Is Internet Computer Protocol? What Is ICP Coin Use For?

What is Internet Computer Protocol (ICP)?

The Internet Computer Protocol (ICP) is a blockchain protocol designed to manage and operate a data network through nodes running on servers worldwide. Utilizing smart contracts, ICP constructs a highly scalable blockchain that facilitates the development of applications.

https://internetcomputer.org/

ICP functions as a decentralized data center, not relying on any specific individual computer systems but instead leveraging contributions from all individual computers in the system. This ensures network security and facilitates the development of user interfaces on websites, allowing users to access applications easily through web browsers and phones.

Key Highlights of the Internet Computer Protocol (ICP)

The structure of ICP consists of four layers. Through smart contracts known as canisters, users and developers can deploy source code and store data on the top layer, the Internet Computer Protocol.

After interacting with the Protocol, data moves down two layers, including ICP Protocol, IP/Internet, and reaching the user data center.

Structure of Internet Computer Protocol (ICP)

Using the Internet Computer Protocol enables users to create websites, develop dApps, and systems by directly deploying development data on the open internet.

Through the Network Nervous System (NNS) developed by Dfinity Foundation, developers and users have the authority to decide who accesses their data, transferring data management rights to end-users. This ensures that user information from dApps does not fall into the hands of server owners like Facebook or Google.

To run a node on the platform, validators must be certified with Data Center Identity (DCID) through the algorithmic management mechanism of the NNS (Network Nervous System). Dfinity Foundation claims that transaction execution on their platform takes only 3-5 seconds, an impressive figure compared to the current Ethereum platform.

Related: What Is Ethereum (ETH)? An Overview of the ETH Project

Detailed Information about ICP Coin

ICP Key Metrics

• Token Name: Internet Computer Protocol Token

• Ticker: ICP

• Blockchain: Dfinity.

• Token Standard: Updating…

• Contract: Updating…

• Token Type: Utility, Governance.

• Total Supply: 469,213,710 ICP

• Circulating Supply: 136,899,213 ICP

Token Allocation

ICP will be distributed as follows:

• Foundation Grants, Team & Partners: 52.93% equivalent to 248,354,816 ICP (lockup details unclear).

• Seed Round Investors: 24.72% equivalent to 116,130,393 ICP (lockup details unclear).

• Early Contributors: 9.5% equivalent to 44,575,302 ICP (lockup details unclear).

• Strategic Investors: 6.85% equivalent to 32,141,139 ICP (lockup details unclear).

• Pre-sale Fundraising Donors: 4.75% equivalent to 22,287,651 ICP (lockup details unclear).

• Community Airdrop: 1.25% equivalent to 5,865,171 ICP (lockup details unclear).

Token Release Schedule

Updating…

Token Use Case

As a platform token, the ICP token serves as both a governance and utility token:

• Lock ICP tokens to vote for proposals and receive rewards based on participation in the governance process.

• Use ICP to pay transaction fees on the platform. Both developers and users on the platform need to pay this fee if they create interactions or use dApps.

Where to Buy/Sell ICP Token

Currently, ICP is traded on various exchanges with a total daily trading volume of around $2.9 billion USD. Exchanges listing this token include Huobi Global, Coinbase Pro, Binance, Okex, Coinlist, and Kucoin.

Team, Investors & Partners

Project Team

The project development team includes project founder Dominic Williams, with a background in operating technology businesses and investment funds in the MMO sector. He has extensive experience in the cryptocurrency field and has contributed to academic work in blockchain.

Investors

Dfinity Foundation has successfully raised significant funds in the past. In early 2018, they raised $61 million from various investment funds. Later in 2018, they raised a substantial $102 million, led by a16z and Polychain.

Other investment funds include SV Angel, Aspect Ventures, Village Global, Multicoin Capital, Scalar Capital, Amino Capital, KR1.

Development Stages of the Internet Computer Protocol (ICP)

ICP has been developed through multiple stages since Dfinity started development in late 2016:

Development of Internet Computer Protocol (ICP)

• Copper: Dfinity introduced the first version, called DFINITY Canister SDK (V0.3.0). They also launched a new programming language standard for development on this platform using WebAssembly.

• Bronze: Presentation of LinkedUp (open version of LinkedIn) the first social network developed on the platform, introduced at the World Economic Forum. Additionally, some other demo applications appeared on ICP.

• Tungsten: This stage allows developers to build dApps on ICP and rapidly expand infrastructure for them. A notable event was the Tungsten Hackathon lasting 48 hours.

• Sodium: Introduction of the Network Nervous System (NNS) algorithm management system, managing the platform and confirming contributions from validators to security. NNS also distributes rewards to validators and delegators, activating the ICP token.

• Mercury: Launch of ICP’s Mainnet, after announcements and delays since 2018. The project finally announced on 07/05/2021 as the public mainnet launch date.

Conclusion

Through this comprehensive overview of the Internet Computer Protocol (ICP) project, AZC News hopes that readers will gain basic information about the project to make their investment decisions. Wishing you successful investments!